SIC Multi Asset Institutional Composite

 September 2021Year to Date
SIC Institutional-2.30%7.03%
Benchmark*-2.07%6.74%

* 5% T Bills, 35% Canadian Bond Composite, 20% S&P TSX Composite TRI, 20% S&P 500 C$ TRI, 20% MSCI EAFE (Net) C$ TRI

September historically produces the weakest market returns of the year and September 2021 stayed true to form.  Both the fixed income and global equity asset classes generated negative returns for the month.  Only cash, yielding 0%, held its own.  Price inflation reports were higher than expected, prompting fears of central bank tightening earlier than had been previously anticipated.  For investors, this seemed as good a reason as any to take profits in growth stocks as well as long duration bonds – resulting in negative monthly returns across the board.

The SIC Multi Asset Institutional Composite underperformed for the month but remained ahead of the benchmark on a year-to-date basis.  Investors appear timid going into October, but this is likely to be temporary.  Stronger economic growth from inventory re-building and falling Delta Variant case counts should reestablish bullish attitudes towards equities.

Terry Shaunessy
James Garcelon